Metalloinvest
Annual Report 2019

Personnel

PERSONNEL STRUCTURE

In 2019, the number of employees hired increased by 44% compared to the previous reporting period.

As at the end of 2019, the Company employs 43,453 people which is 2% less compared to the previous reporting period. The decrease in staff numbers is primarily driven by natural staff turnover.

It should be noted that the number of hired employees increased by 44% compared to the prior reporting period. This is particularly explained by the largescale centralisation programme run by the Company. However, the number of employees who left the Company decreased by 21% y-o-y in 2019 to 4,526 people. In 2019, the staff turnover rate decreased compared to the previous year and amounted to 5.6%.

As compared to 2018, there have been no significant changes in staff structure in terms of gender. Women still account for more than a quarter (27%) of all the Company’s employees, which is quite high for a manufacturing enterprise.

Employees aged 30 to 50 make up the largest share of thestaff structure (66% in 2019 vs. 64% in 2018), due to the specific nature of production activities.

There have been slight changes in staff distribution by job category compared to the previous reporting period. In 2019, workers made up 76.2% of the Company’s staff (77.4% in 2018), while middle managers, specialists, and non-manual employees accounted for 23.7% (22.5% in 2018). The share of senior executives remains unchanged and makes up 0.1% of the total staff.

Headcount by gender,
Headcount by age, 2018–2019
Headcount by employee category, 2018–2019
Headcount by region, 2019
Headcount and employee turnover, 2017–2019, people

TRAINING AND DEVELOPMENT

Metalloinvest determines professional development and employee engagement as its priority.

The Company works on the new corporate culture and transforms corporate training programmes in line with the sustainability principles. For employees, this is the demonstration of our commitment to continuous development of their skills and promotion of learning opportunities.

In 2019, the Company invested 2,135,129 hours in employee, an increase of 35% from 2018. The average number of staff training hours increased by 37.5% to 49 hours.

In 2019, every employee devoted about 6.4 days to professional training and development, on average.

Metalloinvest enterprises also took part in a special programme of professional training and continuing professional education for employees approaching retirement age, which is implemented at the initiative of the Russian Government. In total, the Company’s training centres accepted 257 employees.

Spending on employees’ training, 2016–2019
YEARSPENDING ON EMPLOYEES’
TRAINING, million roubles
REVENUE,
million roubles
%
of revenue
201687.6258,442.60.03 %
2017105.8358,893.80.03 %
2018121.6499,286.80.02 %
2019128.1430,886.80.03 %
Annual average training hours per employee by category, 2017–2019
Average annual training hours per employee by business unit, 2017–2019

REMUNERATION AND INCENTIVES SYSTEM

The Company’s employee remuneration system comprises a set of financial and non-financial incentives.

The Company provides employees with competitive salaries and offers one of the best social benefits packages within the industry. Employees have access to career advancement opportunities, professional development, and active social life

REMUNERATION SYSTEM

Salaries at Metalloinvest enterprises ensure a good standard of living for employees according to regional standards.

The pay scales are higher than the market median and keep up with annual inflation. During 2014–2019, depending on the enterprise, average earnings of Metalloinvest employees increased by 43-51%, significantly outstripping the growth of consumer prices. In 2019, the average monthly pay increased by 10%: 5% owing to indexation, and another 5% is a bonus for compliance with occupational safety requirements.

In December 2019, the Company adopted Metalloinvest Incentive Strategy up to 2023.

The size of remuneration depends on the employee performance. The Company prohibits discrimination, adheres to a fair approach to the award of wages and salaries, and guarantees equal opportunities for promotion and career progression.

The remuneration consists of two main parts: base or fixed salary and variable part. The level of remuneration depends on the scale of pay for the specific grade, but the final size is calculated based on the employee performance and skills.

The variable remuneration includes pay-outs determined by KPIs and quarterly bonuses for employees who demonstrate a strong OHS culture. Employees can also receive a oneoff bonus payment for innovation, operational improvements and other achievements.

In 2019, additional KPIs were introduced for the Company’s managers to support implementation of risk minimisation measures.

Compensation package
Entry level wages at Metalloinvest vs. official minimum wage for each region of operation, 2019, roubles
Average pay at Metalloinvest vs. average wage for each region of operation, 2019, roubles
The structure of the minimum wage in Metalloinvest1, roubles
Average pay of the Company’s employees by region of operation, 2019, roubles
1 The minimum wage in Metalloinvest consists of two parts: base and bonus, which are paid regularly and without fail

MOTIVATION AND NON-FINANCIAL INCENTIVES

Metalloinvest maintains a high level of employee involvement and engagement, therefore special attention to non-material motivation of employees, encouraging their contribution to solving production problems, and noting their achievements. These efforts are performed in accordance with local regulations and provisions of the Collective Agreement.

Since 2019, the unified reward policy applies at all Metalloinvest enterprises: the Company approved Regulations on Corporate Awards and Standard Regulations on Reward Activities. High achievements and excellence of Metalloinvest employees can be recognised by both corporate and state, departmental, regional and municipal awards.

For employee recognition, the Company has implemented the following types of corporate awards:

  • Honorary title “Distinguished Employee of Metalloinvest”;
  • Honorary title “Person of the Year”;
  • Medal «For the Implementation of a Major Investment Project»;
  • Certificate of honour «Metalloinvest»;
  • Gratitude “Metalloinvest”.

Employees eligible for a corporate award receive a cash bonus. In addition to corporate awards at Metalloinvest enterprises, there are several local awards.

The nomination and recognition procedure for corporate awards is quite transparent. Candidates are screened and approved at enterprise level, and then by the Company. The final decision on awarding is made by Special Committee on Employee Recognition.

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